SEBI’s Regulatory Overhaul | Bolstering Indian Capital Markets through Stricter FPI Norms
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- Last Updated on 30 June, 2023
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SEBI Press Release No. 12/2023, Dated: 28.06.2023
The Securities and Exchange Board of India (SEBI) through its board meeting dated 28/06/2023 has approved and implemented several regulatory changes aimed at improving the efficiency and transparency of the Indian capital market.
The highlights of some of the key approvals made by the board are as follows:
1. Timeline for listing of shares in Public Issue to be reduced to 3 days
The SEBI, in its board meeting, has approved the proposal to reduce the time period for the listing of shares in Public Issue from the existing 6 days to 3 days, starting from the date of issue closure (T Day).
The revised timeline of T+3 days shall be made applicable in two phases i.e., voluntary for all public issues opening on or after September 01, 2023 and mandatory on or after December 01, 2023.
2. SEBI to enforce stringent disclosure norms for FPIs concerning ownership, economic interest and control
SEBI has approved the amendment to the SEBI (Foreign Portfolio Investors) Regulations, 2019. The objective behind the amendments is to ensure the integrity of the Indian financial markets and prevent any potential circumvention of regulations.
The amendment focuses on two key areas of concern. Firstly, it aims to prevent the circumvention of Minimum Public Shareholding (MPS) routes or the disclosures under the Substantial Acquisition of Shares and Takeovers Regulations, 2011 (SAST). Secondly, it aims to prevent any misuse of the Foreign Portfolio Investor (FPI) route to acquire or takeover stressed Indian companies at a lower valuation.
3. Listed entities having outstanding to list their subsequent issuances of NCDs
The SEBI in its board meeting, approved the amendment to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 which mandates listed entities with outstanding listed NCDs (as on December 31, 2023) to list their subsequent issuances of NCDs at the stock exchange(s). The new requirement will be effective from 01.01.2024.
Further, if an entity with listed debt securities has outstanding unlisted NCDs as on December 31, 2023, the entity will have the option to list them, but it would not be mandatory to do so.
Click Here To Read The Full Press Release
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